The Splish Brothers Inc opened for business on May 1, 2022. Its trial balance before adjustment on May 31 is as follows. Splish Brothers Inc. Trial Balance May 31, 2022 Account Number Debit Credit 101 Cash $4,340 126 Supplies 2,588 130 Prepaid Insurance 2.976 140 Land 14,880 141 74,400 149 17,280 200 $49.600 201 13,872 208 4,092 Buildings Equipment Notes Payable Accounts Payable Uneared Rent Revenue Common Stock Rent Revenue Advertising Expense Salaries and Wages Expense Utilities Expense 311 43,400 429 11.452 610 744 726 4,092 732 1.116 $122.416 $122.416 In addition to those accounts listed on the trial balance, the chart of accounts for Splish Brothers Inc also contains the following accounts and account numbers: No. 142 Accumulated Depreciation-Buildings, No. 150 Accumulated Depreciation-Equipment, No. 212 Salaries and Wages Payable, No. 230 Interest Payable, No.619 Depreciation Expense, No. 631 Supplies Expense, No. 718 Interest Expense, and No. 722 Insurance Expense Other data: 1 2 SA Prepaid insurance is a 1-year policy starting May 1, 2022 A count of supplies shows $930 of unused supplies on May 31 Annual depreciation is $3,720 on the buildings and $1728 on equipment The note payable interest rate is 12%. (The note was taken out on May 1 and will be repaid along with interest in 2 years.) Two-thirds of the unearned rent revenue has been earned. Salaries and wages of $885 are unpaid and unrecorded at May 31 4 5. 6. Journalize the adjusting entries on May 31 (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Debit Credit No. Date Account Titles and Explanation 248 1 May 31 Insurance Expense 248 Prepaid Insurance May 1.658 2 Supplies Expense 31 1658 Supplies 454 May 31 Depreciation Expense 310 Accumulated Depreciation-Buildings 144 Accumulated Depreciation Equipment 496 4. May 31 Interest Expense 496 Interest Payable 2.728 5. May 31 Unearned Rent Revenue 2728 Rent Revenue BAS 6 May 31 Salaries and Wages Expense 885 Salaries and Wages Payable (b) Prepare a ledger using the three-column form of account. Enter the trial balance amounts into the balance column and then post the adjusting entries. (Post entries in the order of journal entries posted in the previous part of the question) No. 101 Cash Date Explanation Ref Debit Credit Balance May 31 Balance No. 126 Supplies Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting 31 No. 130 Prepaid Insurance Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting JI No. 140 Land Date Explanation Ref Debit Credit Balance May 31 Balance No. 141 Buildings Date Explanation May 31 Balance Ref Debit Credit Balance No. 142 Accumulated Depreciation -Buildings Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 No. 149 Equipment Date Explanation Ref Debit Credit Balance May 31 Balance No. 150 Accumulated Depreciation Equipment Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 No. 200 Notes Payable Date Explanation Ref Debit Credit Balance May 31 Balance No. 201 Accounts Payable Date Explanation May 31 Balance Ref Debit Credit Balance No. 208 Uneamed Rent Revenue Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting 31 No. 212 Salaries and Wages Payable Date Explanation May 31 Adjusting Ref Debit Credit Balance 31 No. 230 Interest Payable Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 Common Stock No. 311 Date Explanation Ref Debit Credit Balance May 31 Balance Rent Revenue No. 429 Date Explanation Ref Debit Credit Balance May 31 Balance May 31 Adjusting 11 No. 610 Advertising Expense Date Explanation Ref Debit Credit Balance May 31 Balance No. 619 Depreciation Expense Date Explanation Ref Debit Debit Credit Balance May 31 Adjusting 31 No. 631 Supplies Expense Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 No. 718 Interest Expense Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 No. 722 Insurance Expense Date Explanation Ref Debit Credit Balance May 31 Adjusting 31 Salaries and Wages Expense Date Explanation No. 726 Ref Debit Credit Balance May 31 Balance May 31 Adjusting 31 No. 732 Utilities Expense Explanation Date Ref Debit Credit Balance May 31 Balance
